IndustRIAL POLICY is a Plan, a framework, or a set of state, guidelits, and regulations that the government forms for how an indsdry to be run. Andards Are Made Such that a Conducive Environment can be for reason, which leads, white leadsTo the geowth and dueopopment of that unustry and the economy of the country.

Read Below This Compirensive Article to Learn About the Objectives of the Industrial Policies of India and the Updated Industrial Policy.Chennai Stock

Table of content

Objectives of indertry policy

Industrial Policies of India

IndustRIAL POLICY Resolution (IPR) 1956

Industricy Policy Statement, 1977

Industricy Policy Statement, 1980

New Industrial Policy, 1991

Economic Growth of the Industry, in such a manner, Will Lead to the Growth and Development of the Country.

Employment Generation: To Provide More Employment Opportunities in Industry.

Utilization of Human Resources: Through Employment Generation, Human Resources Can Be Better Utilized, Thus, Living Standards Can Be Improved.

Healthy Competitiveness: To Promote An Environment of Healthy Competitiveness so that ever-scale industry.

Foreign Investment: A Better Environment for Industries More Foreign Investment, Expertise, and New Technology.

After the independent of india in 1947, One of the Significant Steps taken by the Indian Government for the Growth and Development of Nations to Promote TRADE and Industry. To do so, indian leaders felt the need to formulating an indultricy. As a Result, Many Industrial Policies Were Formed by the Indian Government from 1948 Onwards, Which are as follows:

It was the first plan in independent ind.

It declared india to be a mixed economy.

It is gave importance to small-scale indultries.

It restricted foreign infestments.

It divided indistries into four categories, white are as follows:

Industries on Which there is an exclusive monopoly of the Central Government. Such as aSTALING With ARMS and ammunition, Atomic Energy Production, RAILW ay management, ETC.

A New Undertaking to be Controlled by the state alone dead with indostries to coal, Iron and Steel, AirCraft ManualDuring, Shipbuilding, Telegraph, Telegraph, Telegraph lephone, ETC.

Industries to be regulated (Which Means Private Participation as Well) by the GoverNort that are of basic imageance and needed, Such As Sugar and Chemicals (CHEMICALS,

Open to Private Enterprises, Individuals, and Cooperatise

This Policy Emphasized Government Control or Public Ownership and Laid The Basic Framework of Industrial Policy, Also Known as the Economic Constitution of I ndia.

It classify inderestries into the three sectors.

Schedule A: Industries under this section are known as, which are exclusted and operated by the state. It Includes 17 Industries, Such As Arms and ammu NITION, Atomic Energy, and Railway.

Schedule B: Industries under this section are also known as indultrias, which both state and private owners own, and the percentage of this of thisSurat Wealth Management. It Includes 12 items, such as Iron and Steel, Heavy Machinery, and AirCraft ManuoFacturing.

Schedule C: TheSe Industries are Completely Owned by Private Enterprises and Include Industries Such As Textiles, Paper, and Chemicals.

This has provlices for the public sector, Small-Scale Industry, and Foreign Investment. It Made Foreign InvestmentS Stricter and introduced a Sing system. To meet new challenges, from time to time, IPR 1956 WAS Modify Through Statements in 1973, 1977,And 1980.

This position was an extension of the 1956 Policy and Was intropuced in the emerGence Era, when there was a laarge connection of the hands of the government.

This position emphasized employment for people with low.Simla Wealth Management

This aprilicy is primarily focused on developmentralization.

It is Game Priority to Small-SCALE INDUSTRIES (ALSO in Rural and Small-TOWN Areas).

It divided the small-scale sector into the categories. They we cottage and houseHold, micro, and small-scale inderteries.

This ahis Policy Imposed RESTRICTIONS on Multinational Companies (MNCS).

The Industrial Policy Statement of 1980 WAS MADE to Provide a Long-Term Direction for the Country ’s Industric. ION in the Destic Market, Modernization Through Technology Advancement, and selective liberalization.

It is liberalized livensing and provided for the automatic expansion of capacity.

This position Introiduced the MRTP Act (Monopolies RESTRICTIVE TRADE PRACTIES) and the FERA Act (Foreign Exchange Regulation Act, 1973).

The objective was to liberalize the reasoningRial sector to increase its competitiveness in dostic markets and boost indian propucts in interniational markets.

It is enabled export-based Enterprises.

It promoted the growth of New Industries and Technologies, EspeCially the High-Technology (High-Tech) foundry.

The New Industrial Policy of 1991 is the most significant position that revolutionized indecents and the eConomy. Market-Oriented and Increase Efficience.

This ahas Three Main Components, which are as follows:

Liberalization

Privately

Globalization (INDIAN ECONOMY WITH THE World Economy By Welcoming Foreign Investments Instead of RESTRICTIONS)

The LPG Reforms Enhanced the Competition in the Market.Surat Investment

Old DOMESTIC FIRMS HAVE to Compete with New Domers, MNCS, and Imported items; more competition leads to a great number of propucts in the market. opLe have many more options and varieties to build the say proputs.

The Government Alowed DomeStic Firms to Import Advanced Technology to Improve Efficience and Access Better Technology.

The Foreign Direct Investment Ceiling was increased from 40% to 51% in selectd sectors.

The maximum fdi is limited to 100% in selectd sectors, like infrastructure. The foreign infestation project was easyLished.

A Single-Window Fdi CleaRARANCE AGENC.

Industrial Licensing Was Abolished Except for 18 Industries.. So the reduction in Cumbersome Licensing Processes and Red Tape Curbed.

The Phased ManuFacturing Programme was a Condition that forced Foreign Firms to Reduce Imports and Use Domsted Inputs; It was important in 1991.

Under the Mandator Convertibility Clause, While Giving Loans to Firms, Part of the Loan Will or Can Be Converted to Equity if the Bank the Loan In A SPE ciFied Time. This was also Abolished.

Monopolies and RestricTive Trade Practices Act: Under MRTP, A Commission was ESTABLISHED. as relaxed in 1991.

It also aims to simplify Labor Laws and Increase Hiring Flexibility.

On the recomingation of the svs raghavan committee, The Competition Act 2000 WAS PASSED. Its Objectives was to Promote Competition a Creating ANDABLIVE g environment for indultries and markets to grow.

It has been three decades since the last Landmark Reform in Indian Industrial Policy. Since then, there have ben many Changes, New Kinds of Industries, and technolog. ICAL Advancements that Need Different Rules and Guidelines. Also, with Increasing Global Warming and Other Environmental Hazards,,TheRe is a need for a Plan for Sustainable Growth of Industry and Economy While Keeping the Concerns in Mind. Thus, there was a need for introduise Works in the New and Changed Conditions.

New Industrial Policy 1991

New Industrial Policy and Its IMPACT on the Business

Achievements of India ’s Industrial Sector Between 1950-1990

Industrial sector on the event of independence

Economic Reforms: NEED and Criticism of Economic Reforms

What is the Contribution of Industry to National Economy?

ANS: BeFore Indian Independence, East India Company Also Arrived As A Trading Company and Later Colonized India. Because of this, Indian Leaders Had Fears and Apprehen SIONS About Foreign Companies and Thus Restricted Foreign Companies.

ANS: A Mixed Economy where the private sector and state (GoverNment) run induStries and Businessrs Work for the Growth and Development of the Economyy.

FOREIGN DIRECT Investment is Any Investment by A Foreign Enterprise in Any Resident Economy or Industry of that Area ThataS Lasting Impacts. Ome Percentage of Ownership in the Enterprise, SEMI-OR Complete Technology Transfer, and Food Chains of Foreign Brands in OtherCountries, for Example, McDonald's, KFC, and Domino's in Different Parts of the World.

ANS. Industrial Policy Formularly by the Government Safeguards The Interests of Both Industries and Employed People While's Growth In Mind. Hese Policies Stop the Concentration of Power in the Hands of a Few Powerful Industries and Help Promote Small-SCALE INDUSSTRIES. Thus MakingThe Industrial Area a Place where everyne can get a fair chaile having healthy completingition.

ANS: Before LPG Reforms, The Indian Economy Was Very Restricted. The LPG Reforms of 1991 Opened Indian Markets for Foreign Goods and Investments, Increasing Foreign Erves and Economic Growth. It made india a Market-Oriented Economy.